As an engineer and entrepreneur, he Ran a successful family business in Canada for decades, in its peak using over 100 workers, until economical upheaval destroyed the profitability of North American manufacturing. Driven from business, he decided to study economics… to detect the cause of the unhappy circumstance.
The halving takes effect when the Amount of ‘Bitcoins’ awarded to miners following their successful creation of this new block is cut in half. Therefore, this phenomenon will reduce the awarded ‘Bitcoins’ from 25 coins to 12.5. It is not a new thing, however it does have a lasting effect and it is not yet known if it’s good or bad to ‘Bitcoin’.
Okay so, let’s say that the regulators, FBI, or another branch of government interferes and documents charges – if they record criminal charges that somebody defrauded someone else then just how much defrauding was demanded? If the government enforcement and justice department put a dollar amount number to this, they’re inadvertently agreeing that the electronic currency is real, and it’s a value, consequently, acknowledging it. If they don’t get involved, then any fraud that may or may not have happened sets the whole concept back a ways, and the media will continue to push down the confidence of all electronic or crypto-currencies.
So, it is a catch-22 for the authorities, regulators, and enforcement folks, and they cannot look the other way or deny that this trend no more. Is it time for regulations. Well, I personally hate regulation, but isn’t this how it usually begins. Once it’s regulated credibility is given to the concept, but his electronic currency theory may also undermine the whole One World Currency plan or perhaps the US Dollar (Petro-Dollar) paradigm, and there could be hell to pay for this as well. Can the international market handle that level of disruption? Stay tuned, I guess we will see.
In the meantime, what happens next will either make or break this new shift in how we see monetary price, riches, online transactions and the way the real world will mind-meld into our future blurred reality. I simply don’t see a lot of folks thinking here, but everybody should, one misstep and we can all be in a world of hurt – all of humankind that is. Please think about all of this and consider it. We believe the above thoughts and suggestions must be taken into account in any discussion on crypto genius australia. They are by no means all there is to know as you will quickly discover.
They will serve you well, however, in more ways than you realize. However, we always emphasize that anyone takes a closer examination at the general big picture as it relates to this subject. The rest of the article will provide you with a few more essential points to bear in mind.
Bitcoin is further away from being The numeraire; not only is it a number, much as Fiat… but its value is quantified in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even though it succeeds to replace the Dollar as the approved ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is unique in storing value for centuries. Nothing else in touch of humanity has this unique combination of qualities.
In conclusion, while Bitcoin has A few advantages over Fiat, specifically anonymity and decentralization, it fails in its promise to being money. Its advantages will also be questionable; the intent is to restrict the ‘mining’ of Bitcoins to 26,000,000 units; this is the ‘mining’ algorithm gets harder and harder to solve, then hopeless after the 26 million Bitcoins are mined. Unfortunately, this statement might well be the death knell of Bitcoin; currently, a few central banks have announced that Bitcoins might become a ‘reservable’ currency.
Wow, sounds like a major measure for Bitcoin, does it not? After all, the ‘large banks’ appear to be accepting the legitimate value of the Bitcoin, no? This actually means is banks recognize that they could exchange Fiat to get Bitcoins… and also to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars isn’t even modest change to the Fiat printers; it’s roughly a week’s worth of printing from the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what useful purpose could they serve?
There would be no Bitcoins left Circulation; an ideal corner. If there aren’t any Bitcoins in flow, how on Earth can they be used as a medium of exchange? And, what would the issuers of Bitcoin possibly do to defend against such a destiny? Change the algorithm and boost the 26 million to… 52 million? To 104 million? Combine the Fiat printing parade? But , from the quantity theory of money, Bitcoin would begin to lose value, just as Fiat supposedly loses value through ‘over-printing’…
We come to the key issue; why search To get a ‘new money’ when we already have the very best money, Gold? Fear of Gold confiscation? Deficiency of anonymity in the intrusive government? Brutal taxation? Fiat money legal tender laws? Each of the above. The answer is not in a new form of cash, but in a new social structure, one without Fiat, with no Government spying, without drones and swat teams… with no IRS, border guards, TSA thugs… on and on. A huge independence not tyranny. Once this is accomplished, Gold will resume its early and vital role as fair money… and not a minute before.
Rudy J. Fritsch was created in Hungary In 1947, and fled Socialist tyranny throughout the Hungarian Revolution of 1956. His family had lived through WWII and the resultant Hungarian hyperinflation, thus he’s intimate encounter with financial destruction.